Why Private Company Valuations Matter

All summer, Ipreo’s Private Capital Markets team provided a variety of excellent, substantial material to the blog.

Over the past few months, we’ve published a series on the OPM method of allocating value, another on volatility, and yet another on DLOM. We also explored ideal holding periods, conducted a three-part interview with Ipreo’s EVP of PCM, Kevin Black. We’ve even shared Ipreo PCM’s award-winning infographic!

As we exit summer and enter fall, we’re kicking off another series. Today, Bharat Kanodia, Director of Valuations, and Brett Suchor, Managing Director and Head of Venture and Portfolio Company Market Strategy, are on the Blog with the first entry in a series on valuations, introducing the topic with a look at why they matter.

Excerpt:

In order to truly answer this question, it is important to understand how a privately-held venture backed company can actually have a publicly-known value. Generally the only indication of value that is released to the market is the amount and percentage of the company that investors purchased (aka the last round). The media will then calculate a value of the company known as post money. Post money value is the last round issue price times the total number of shares issued.

Read the full Special Report – Why Private Company Valuations Matter